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HomeMy WebLinkAboutAugust 24, 1987OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING AUGUST 24, 1987 The meeting was called to order by Mayor Nawrocki at 7:30 p.m.. 1. Roll Call Paulson, Petkoff, Carlson, Peterson, Nawrocki - present 2. Invocation There was no clergyman available to offer an Invocation. Four Volunteer Firefighters (two from the Columbia Heights Department) competed in Emergency Care Competition in Virginia Beach, Virginia and earned First Place in the world competition for National Emergency Care and Fourth Place for National Emergency Medical Technicians Competition. The trophies they received they pre- sented to the Fire Chief. 3. Consent A~enda Minutes for Approval The Council approved the minutes of the Regular City Council Meeting of August lOth as presented in writing and there were no corrections. ~equest for Grand Opening Banner by Towne Square Pizza, 4202 Central Avenue The Council approved the placement of a grand opening banner at Towne Square Pizza located at 4202 Central Avenue; however, such permit shall not exceed five consecutive calendar days; and, furthermore that such permit may be issued upon receipt of a $100 refundable fee. Bicentennial Commission - Fireworks Display The Council authorized the closing of 39th Avenue between Jefferson Street and Fifth Street from 7:30 to 11:O0 p.m. and that no parking be allowed on said street from l:OO to 11:00 on Thursday, September 17, 1987. Thins street closing is to accommodate the Fireworks display for the Bicentennial of the Constitution Signing. Temporary Special Event Billboard - Downtown Celebration The Council authorized the erection of a special event billboard regarding the Annual Downtown Celebration for a period not to exceed ten calendar days and that such billboard will be removed upon completion of the Celebration on Septem- ber 12, 1987. 4. Approval of Consent Agenda Motion by Petkoff, second by Paulson to approve the consent agenda as presented. Roll call: All ayes 5. Oral Petitions There were no oral petitions. 6. Ordinances and Resolutions a. Second Reading of Ordinance No. 1143, Vacating a Storm Sewer Easement in University Heights Motion by Petkoff, second by Paulson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes Regular Council Meeting August 24, 1987 page 2 ORDINANCE NO. 1143 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, VACATING STORM SEWER EASEMENT IN UNIVERSITY HEIGHTS The City of Columbia Heights does ordain: Section 1: The City of Columbia Heights herewith vacates its easement for the installation and continued maintenance of a storm drain and appurtenant structures over, under and across the following described property, to-wit: That part of the West 10.00 feet of Lots 12 and 13, Block 1, Rearrangement of Block "D", Columbia Heights Annex to Minneapolis lying within Lot 1, Block 1, UNIVERSIT~'HEIGHTS ADDITION except that part thereof lying within the utility and drainage ease- ments as shown on the plat of said Lot 1. Section 2: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First reading: Second reading: Date of passage: August 10, 1987 August 24, 1987 August 24, 1987 Offered by: Petkoff Seconded by: Paulson Roll call: All ayes Jo-Anne Student, Council Secretary Bruce G. Nawrocki, Mayor b. Second Reading of Ordinance No. 1154, Pertaining to Liability Insurance and Intoxicating Liquors Motion by Paulson, second by Peterson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. 1154 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, AND PERTAINING TO LIABILITY INSURANCE AND INTOXICATING LIQUOR The City of Columbia Heights does ordain: Section 1: Section 5.501(11) of Ordinance No. 853, City Code of 1977, passed June 21, 1977, and amended pursuant to Ordinance No. 1056, dated October 12, 1983, which currently reads as follows, to wit: "Off-sale liquor licenses with annual beer sales of less than $9,000 are exempt from the insurance provisions of Section 5.501(10). No such exemption shall be granted unless the licensee: (al furnishes proof by accountant's affidavit or other documentary evidence satisfactory to the Clerk, and (bi such proof is foand satisfactory to the Liquor Control Commission in demonstrating that the applicant has annual sales of less than $9,O00." Regular Council Meeting August 24, 1987 page 3 5.501 (ll) Section 2: is herewith amended to read as follows, to-wit: Section 5.502(10) is not applied to licensees who by affidavit establish that: (a) they are on-sale non-intoxicating malt liquor licensees with sales of less than $10,000 of non-intoxicating malt liquor for the preceding year, or (bi they are off-sale non-intoxicating malt liquor licensees with sales of less than $20,000 of non-intoxicating malt liquor for the preceding year. Section 5.503(15) of Ordinance No. 853, City Code of 1~77, passed June 21, 1~77, as amended by Ordinance No. 1055, passed October lO, 1983, which currently reads as follows, to-wit: "Every applicant and licensee must file proof of financial respon- sibility with the City Clerk as follows: (al A certificate that there is in effect an insurance policy or pool providing the following minimum coverages: (ii $100,000 because of bodily injury to any one person in any one occurrence, and, subject to the limit for one person, in the amount of $300,000 because of bodily injury to two or more persons in any one occurrence, and in the amount of $10,000 because of injury to or destruction of property of others in any one occurrence. (ii) $100,000 for loss of means of support of any one person in any one occurrence, and, subject to the limit for one person $300,000 for loss of means of support of two or more persons in any one occurrence. (bi A bond of surety company with minimum coverages as provided In Section 5.503(15)(a), or, (c) A certificate'of the state treasurer that the licensee has deposited with him $300,000 in cash or securities which may legally be purchased by savings banks or trust funds having a market va]ua of $300,000. (d) Any insurance certificates or policies filed with the City shall provide that the insurer may not cancel coverage without first giving 30 dayse written notice to the City. The certificate or policy must show the names of the insurance company and agency, policy number and policy expiration date. Receipt by the City of a notice of expiration of required insurance or entering into the final thirty days of the term of any required policy without a renewal or other complying policy being filed with the Clerk shall result in the immediate revocation or suspension of the license." is herewith amended to read as follows, to-wit: Regular Council Meeting August 24, 1987 page 4 Every applicant and licensee must file and maintain proof of financial responsibility with the City Clerk as follows: (a) A certificate that there is in effect for the license period an insurance policy or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,O00 because of bodily injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; (bi A bond of a surety company with minimum coverages as provided in Section 5.503(15)(a), or (c) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or secu- rities that may be legally purchased by savings banks or trust funds having a market value of $100,000. This section does not prohibit an applicant or licensee from posting limits higher than those required under this section or from providing coverage required by this section in combination with other insurance coverage. The applicant and licensee must provide an annual aggregate policy limit dram shop insurance of not less than $300,000 per policy year. (d) Any insurance certificates or policies filed with the City shall provide that the insured or insurer may not cancel the policy, certificate or other coverage unless the cancelling party has first given not less than 30 days' wri~tten notice to the City of its intent to cancel the policy. Any certificate or policy posted in accordance with this section must show the names of the insurance company and agency, policy number, and policy expiration date. Receipt by the City of a notice of expiration of required insurance or certificates or of entry into the final 30 days of the term of any required policy being file with the Clerk shall result in the immediate revocation or suspension of the license. Section 3: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First reading: Second reading: Date of passage: July 27, 1987 August 24, 1987 August 24, 1987 Offered by: Paulson Seconded by: Carlson Roll call: All ayes Mayor Bruce G. Nawrocki Jo-Anne Student, Council Secretary Regular Council Meeting August 24, 1987 page 5 c. Second Reading of Ordinance No. 1153, Authorizing the Sale of Sullivan Lake Property Motion by Petkoff, second by Paulson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. i153 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, CONVEYING CERTAIN REAL PROPERTY TO THE HOUSING AND REDEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS The City Council of Columbia Heights does ordain: Section 1: The City of Columbia Heights shall deed and convey to the Housing and Redevelopment Authority of Columbia Heights, Minnesota, the following described real property, to wit: REGISTERED LAND SURVEY NO. 8__~4, files of the Registrar of Titles of Anoka County, Minnesota. Section 2: The Mayor and City Manager are hereby authorized to execute any documents necessary to carry out this Ordinance. Section 3: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First reading: Second reading: Date of passage: July 13, 1987 August 24, 1987 August 24, 1987 Offered by: Seconded by: Roll call: Petkoff Paulson Paulson, Petkoff, Peterson - aye Carlson, Nawrocki - nay d. Resolution No. 87-50; $1,100,000 General Obligation Taxable Tax Increment Bonds of 1987 Motion by Peterson, second by Petkoff to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. 87-50 BEING A RESOLUTION AUTHORIZING AND AWARDING THE SALE OF, AND PROVIDING THE FORMS, TERMS, COVENANTS AND DIRECTIONS FOR $1,1OO,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1987 A BE IT RESOLVED BY THE CITY COUNCIL (THE "COUNCIL") OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA (THE "ISSUER") AS FOLLOWS: Section 1. Recitals. 1.01. There heretofore has been established by the Housing and Redevelopment Authority in and for the City of Columbia Heights, Minnesota (the "Authority") and approved by the Issuer pursuant to Minnesota Statutes, Section 462.411 et .~.e~ (recodified as Minnesota Statutes, Sections 469.001 through 469.047) a Downtown CBD Revitalization Project, as modified (the "Project") and the Sullivan Lake Tax Increment Financing District (the "District"). Regular Council Meeting August 24, 1987 page 6 1.02. The Issuer heretofore has found and determined that it is in the best interest of the Issuer that it issue its general obligation taxable tax incre- ment bonds as described below. Section 2. Award of Sale; Terms of Bonds. 2.01. Affidavits showing publication of notice of call for bids in the official newspaper of the Issuer, Finance and Commerce and in Commercial West have been examined and have been approved and ordered placed on file. The following bids for the sale of the Bonds were received: (Attached) 2.02. After considering the bids received, the City of Columbia Heights (the "Issuer") hereby awards the sale of the $1,100,000 General Obligation Taxable Tax Increment Bonds, Series 1987A (the "Bonds") to a syndicate headed by American National Bank, St. Paul, Minnesota (the "Purchaser") as the bidder offering the lowest net interest cost by its bid to purchase the Bonds at a price of $1,098,770 plus accrued interest to the date of delivery, the Bonds to bear interest at the rates per annum set forth below. The Clerk-Treasurer of the Issuer is directed to retain the good faith check of the Purchaser pending delivery of and payment for the Bonds, and to return the checks of the unsuccessful bidders. 2.03. The Issuer shall issue the Bonds in the aggregate principal amount of ~'1,100,000 dated August 1, 1987 as fully registered bonds without coupons. The Bonds shall be in demoninations of $5,000 or any integral multiple thereof not exceeding the principal amount of a single maturity, shall be numbered from R-1 upwards in order of issuance, and shall bear interest at the rates set forth below, payable semiannually on each February 1, and August 1, commencing February !, 1988, and shall mature on February 1 in the years and amounts as follows: Year Amount Interest Rate 1991 $ 120,000 8.40 % 1992 130,000 8.60 1993 140,000 8.75 1994 155,000 8.90 1995 170,000 9.00 1996 185,000 9.10 1997 200,000 9.10 2.04. All Bonds maturing on or after Feburary 1, 1994, shall be subject to redemption and prior payment in whole or in part in inverse order of maturity and by lot within maturity at the option of the Issuer on February 1, 1993, and any interest payment date thereafter at a price of par plus accrued interest. Thirty days' prior notice of redemption shall be given by first-class mail to the Registrar and to the registered owners of the Bonds, and notice of redemption will be published in the manner provided by Chapter 475, Minnesota Statutes. Upon notice having been so given, the Bonds or portions of Bonds therein specified shall be due and payable at the stated redemption date and price with accrued interest to the redemption date, and upon funds for such payment being held by or on behalf of the Registrar for such payment on the specified redemption date, interest thereon shall cease to accrue after such redemption date. No defect in the mailed notice of redemption shall affect the validity of the call for redemption of any Bond. Regular Council Meeting August 24, 1987 page 7 2.O5. The Bonds shall be payable as to principal upon presentation at the main office of Marquette Bank Minneapolis, Minnesota (the "Registrar"), or at the office of such other successor registrar as the Issuer may hereafter designate upon 60 days mailed notice of the registered owners. Interest on each Bond shall be payable by check or draft of the Registrar mailed the last business day prior to the interest payment date to the registered holder thereof at his or her address as it appears on the bond register at the close o~ business on the 15th day (whether or not a business day) of the calendar month next pre- ceding the interest payment date. Section 3. Form and Execution of the Bonds. 3.01. The Bonds shall be in substantially the followin9 form, with the necessary variations as to number, CUSIP Number, rate of interest and date of maturity, the blanks to be properly filled in: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS No. R- $ GENERAL OBLIGATION TAXABLE TAX INCREMENT BOND, SERIES 1987 A Rate Maturity Nominal Date of Original Issue CUSIP August I,'1987 Registered Owner: Principal Amount: Dollars .. The City of Columbia Heights, Minnesota (the "City"), for value received, hereby certifies that it is indebted and hereby promises to pay to the registered owner specified above, or registered assigns, the principal amount specified above and to pay to the registered owner hereof interest on such principal sum at the interest rate specified above from August 1, 1987, or the most recent interest payment date to which interest has been paid or duly provided for as specified below, on February I and August 1 of each year, commencing February 1, 1988, until said principal sum is paid. Principal and the redemption price are payable in lawful money of the United States of America at Marquette Bank Minneapolis, as Registrar, Transfer Agent and Paying Agent, in Minneapolis, Minnesota, or at the offices of such successor agent as the City may designate upon 60 days notice to the registered owners at their registered addressed (the "Registrar"). Interest shall be paid on each February ] and August 1 by check or draft of the Registrar mailed on the last business day prior to the interest payment date to the person in whose name this Bond is registered at the close of business on the fifteenth day of the preceding month (whether or not a business day) at his or her address set forth on the bond register maintained by the Registrar. Any such interest not punctually paid or provided for will be paid to the person in whose name this Bond is registered at the close of business on a special record date established by the Registrar for the payment of such defaulted interest. Regular Council Meeting August 24, 1987 page 8 The Bonds of this series maturing on or after February I, 1994, are subject to redemption at the option of the City, in whole or in part in inverse order of maturity and by lot within a maturity, on February 1, 1993 and any interest payment date thereafter at a price equal to par and accrued interest. Thirty days' prior notice of redemption will be given by first-class mail to the Registrar and to the registered owners, and notice of redemption will be published in the manner provided by Minnesota Statutes, Chapter 475. No defect in mailed notice will affect the validity of the call for redemption of any Bond. This Bond is one of a series of General Obligation Taxable Tax Increment Bonds in the aggregate principal amount of One Million One Hundred Thousand Dollars ($1,100,000) of like date and tenor except for number, interest rate, denomination, date of maturity and redemption privilege, and is issued for the purpose of pro- viding funds to finance or otherwise pay public redevelopment costs pursuant to Minnesota Statutes, Sections 469.001 through 469.047, of the Downtown CBD Revita- lization Project (the "Project") established by The Housing and Redevlopment Authority in and for the City of Columbia Heights, Minnesota, and pursuant to an authorizing resolution (the "Resolution") adopted by the City Council of the City on August 24, 1987, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475 and Sections 469.174 through 469.179. The Bonds of this series are payable from the City's Project Account, created on the official records of the City by resolution adopted on August 11, 1980 (the "Bond Fund") to which has been pledged certain tax increment generated by the Project, including ~ax increment generated by the Sullivan Lake Tax Increment Financing District. All taxable property within the City is also subject to the levy of direct general ad valorem taxes required by law to be levied and extended if needed for this purpose, without limitation of rate or amount. The issuance of this bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. As provided in the Resolution, and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City kept for that purpose at the principal office of the Registrar, by the registered owner hereof in person or by such owner's attorney duly authorized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or such owner's duly authorized attorney. Upon such transfer and the payment of any tax, fee or governmental charge required to be pai, d by the City or the Registrar with respect to such transfer, there will be issued in the name of the transferee a new Bond or Bonds of the same aggregate principal amount as the surrendered Bond. The Bonds of this series are issuable only as fully registered bonds without coupons in denominations of $5,OOO or any integral multiple thereof not exceeding the principal amount maturing in any one year. As provided in the Resolution and subject to certain limitations therein set forth, the Bonds of this series of a different authorized demonination, as requested by the registered owner or his duly authorized attorney, upon surrender thereof to the Registrar. It is hereby Certified and Recited that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed in order to make this Bond a valid and binding general obligation of the City according to its terms, have been done, do exist, Regular Council Meeting August 24, 1987 page 9 to happen and to be performed in order to make this Bond a valid and binding general obligation of the City according to its terms, have been done, do exist, have happened and have been performed in due f~rm, time and manner as so required. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been manually signed by a person authorized to sign on behalf of the Registrar. IN WITNESS WHEREOF, The City of Columbia Heights, Minnesota has caused this Bond to be executed with the facsimile signatures of its Mayor and its City Manager, both as of the Nominal Date of Original Issue specified above. CITY OF COLUMBIA HEIGHTS, MINNESOTA By (Facsimile) Mayor By (Facsimile) Mayor CERTIFICATE OF AUTHENTICATION Dated: This is one of the Bonds described in the within mentioned Resolution. Bond Registrar By: Authorized Signature FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed by: Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm havin9 membership in one of the major stock exchanges. Notice: The signature[s) on this assignment must correpond with the name(s) appearing on the face of this Bond in every particular, without alteration or any change whatever. (Form of Certificate) CERTIFICATE AS TO LEGAL OPINION I, William Elrlte, Clerk-Treasurer of Columbia Heights, Minnesota hereby certify that except for the date line, the above is full, true and compared copy of the Regular Council Meeting August 24, 1987 page l0 of the legal opinion of Holmes & Graven, Chartered, of Minneapolis, Minnesota, which was delivered to me upon delivery of the bonds and is now on file in my office. (Facsimile) Clerk-Treasurer City of Columbia Heights 3.02. As long as any of the Bonds issued hereunder shall remain outstanding, the Issuer shall cause to be kept at the principal office of the Registrar in which, subject to such reasonable regulations as the Registrar may prescribe, the Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds. Marquette Bank Minneapolis is hereby appointed Registrar, Transfer Agent and Paying Agent with respect to the Bonds. Upon surrender for transfer of any Bond with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or his duly authorized attorney, and upon payment of any tax, fee or other governmental charge required to be paid with respect to such transfer, the Issuer shall execute and the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more fully registered Bonds of any authorized denominations and of a like aggregate principal amount, interest rate and maturity. Any Bonds, upon surrender thereof at the office of the Registrar may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest rate of any authorized denomi- nations. In all cases in which the privilege of exchanging or trensferring fully registered Bonds is exercised, the Issuer shall execute and the Registrar shall deliver Bonds in accordance with the provisions of this Resolution. For every such exchange or transfer of Bonds, whether temporary or definitive, the Issuer or the bond Registrar may make a charge sufficient to reimburse it for any tax, fee or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer. Notwithstanding any other provision of this Resolution, the cost of preparing each new Bond upon exchange or transfer, and any other expenses of the Issuer or the Bond Registrar incurred in connection therewith (except any applicable tax, fee or. other governmental charge) shall be paid by the Issuer. The Issuer shall not be obligated to make any such exchange or transfer of Bonds during the fifteen (15) days next preceding the date of the first publication of notice of redemption in the case of a proposed redemption of Bonds. The Issuer and the Registrar shall not be required to make any transfer or exchange of any Bonds called for redemption. 3.O3. Interest on any Bond which is payable, and is punctually paid or duly pro- vided for, on any interest payment date shall be paid to the person in whose name that Bond (or one or more Bonds for which such bond was exchanged) is regis- tered at the close of business on the fifteenth day of the month preceding such interest payment date (whether or not a business day). Any interest on any Bond which is payable, but is not punctually paid or duly provided for, on any interest payment date shall forthwith cease to be payable to the registered holder on the releveant regular record date solely by virtue of such holder having been such holder; and such defaulted interest may be paid by the Issuer to the person in whose name such Bond is registered at the close Of business on a special record date established by the Registrar for the payment of such defaulted interest. Subject to the foregoing provisions of this paragraph, each Bond delivered under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond and each such Bond shall bear interest Regular Council Meeting August 24, 1987 page II from such date that neither gain nor loss in interest shall result from such transfer, exchange or substitution. 3.Oh. As to any Bond, the Issuer and the Registrar and their respective successors, each in its discretion, may deem and treat the person in whose name the same for the time being shall be registered as the absolute owner thereof for all purposes and neither the Issuer nor the Registrar nor their respective successors shall be affected by any notice to the contrary. Payment of or on account of the principal of any such Bond shall be made only to or upon the order of the regis- tered owner thereof, but such registration may be changed as above provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 3.05. If (i) any mutilated Bond is surrendered to the Registrar, and the Issuer and the Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Bond, and (ii) there is delivered to the Issuer and the Registrar such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Issuer or the Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute, and upon its request the Registrar shall anthenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bonds, a new Bond of like tenor or princlpal amount, bearing a number not comtemporaneously outstanding. In case any such mutillated, destroyed, lost or stolen Bond has. be- come or is about to become due and payable, the Issuer in.its discretion may, instead of issuing a new Bond, pay such Bond. Upon the issuance of any new Bond under this subsection, the Issuer may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. Every new Bond issued pursuant to this subsection in lieu of any destroyed, lost, or stolen Bond shall constitute an original additional contractural obligation of the Issuer, whether or not the destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Resolution equally and proportiona- tely with any and all Other Bonds duly issued hereunder. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost, or stolen Bonds. Section 4. Execution and Delivery 4.01. The Bonds shall be executed by the respective facsimile signatures of Mayor and City Manager as set forth in the form of Bond. The seal of the Issuer shall be omitted from the Bonds as permitted by law. The text of the approving legal opinion of Holmes & Graven, Chartered, of Minneapolis, Minnesota, as bond counsel, shall be printed on the reverse side of each Bond and shall be certified by the fac- simile signature of the Clerk-Treasurer. When said Bonds shall have been duly executed and authenticated by the Registrar in accordance with this resolution, the same shall be dellvered to the Purchaser upon payment of the purchase price, and the receipt of the Clerk-Treasurer delivered to the Purchaser upon paYment of the purchase price, add the receipt of the Clerk-Treasurer delivered to the Purchaser thereof shall be in full acquittance; and the Purchaser shall not be bound to see to the application of the purchase money. The Bonds shall not be valld for any purpose untll authenticated by the Registrar. Regular Council Meeting August 24, 1987 page 12 4.02. The Official Statement relating to the Bonds, on file with the Clerk- Treasurer presented to this meeting, is hereby approved, and the furnishing thereof to prospective bidders for the Bonds is hereby ratified and confirmed, insofar as the same relates to the Bonds and the sale thereof. 4.03. If such officers find the same to be accurate, the Mayor, the City Manager and the Clerk-Treasurer are authorized and directed to furnish to the Purchaser at the closing a certificate that, to the best of the knowledge of such officers, the Official Statement does not, at the date of closing, and did not, at the time of sale of the Bonds, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Unless litigation shall have been commenced and be pending questioning the Bonds, revenues pledged for payments of the bonds, or the organization of the Issuer or incumbency of its officers, at the closing, the Mayor and the City Manager shall execute and deliver to the successful bidder a suitable certificate as to absence of material litigation, and a certificate as to payment for and delivery of the Bonds, with the signed approving legal opinion of.Holmes & Graven, Chartered, as to the validity and enforceability of the Bonds. Section 5. Bond Fund and Accounts, Appropriations, Pledges. 5.O1. There is hereby created a special account (the "1987 Taxable Bond Account") with respect to the Bonds in the Issuer's Project Account (the "Project Account") created on the official records of the IssUer, by resolution of the Issuer adopted on August 11, 1980. The 1987 Taxable Bond Account shall be maintained in the manner specified until all of the Bonds herein authorized, any refunding bonds issued to refund the Bonds, and any other general obligation tax increment bonds hereafter issued and made payable from the Project Account, and the interest thereon, have been fully paid and the Issuer has been fully reimbursed from the pledge of tax increment for any of the principal and interest of the Bonds paid by the Issuer from general ad valorem taxes levied on property in the Issuer. In the 1987 Taxable Bond Account there shall be maintained two separate subaccounts, to be designated as the "Capital Subaccount" and the "Debt Service Subaccount", respectively. Captial Subaccount. The proceeds from the sale of the Bonds, less the amount of the proceeds of the Bonds deposited in the Debt Service Subaccount, and less any ac- crued interest and unused discount received thereon, shall be credited to the Capital Subaccount, from which there shall be paid costs and expenses of the Project to be paid from proceeds of the Bonds, including the cost of any con- struction contracts heretofore let and all other costs incurred and to be incurred, of the kind authorized in Minnesota Statutes, Sections 475.65, 469.176, subdivision 4, and Minnesota Statutes, Sections 469.001 through 469.047. Debt Service Subaccount. There is hereby pledged and there shall be credited to the Debt Service Subaccount (a) all unused discount and accrued interest received upon delivery of and payment for the Bonds (b) collections of tax increment de- rived from the District and tax increment derived from the Project which is pledged to the payment of principal of and interest on the Bonds under the amended pledge agreement described in Section 6.01 hereof, any taxes from time to time levied for the payment of the Bonds, and revenues derived from any other sources available and pledged to pay principal premium, if any, and interest on the Bonds, and (c) all funds remaining in the Capital Subaccount after completion of the Project and payment of the costs thereof. The Debt Service Subaccount herein created shall be used solely to pay principal of, premium, if any, and Interest Regular Council Meeting August 24, 1987 page 13 on the Bonds and any other general obligation tax increment bonds hereafter issued and made payable from said Project Account, except that upon discharge of the Bonds and such already outstanding or additional Bonds, the Issuer may use any remaining funds in the Debt Service Subaccount to reimburse the Issuer as provided above. 5.02. The Issuer hereby determines that the estimated collections of tax increment and other pledged amounts will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds (except for interest and principal payable from funds, which are on hand and irrevocably deposited to the Debt Service Subaccount as of the date of delivery of and payment for the Bonds). The full faith and credit and taxing powers of the Issuer are hereby irrevocably pledged for the prompt and full payment of the prin- cipal of and interest on the Bonds and such other general obligation indebtedness as may be made payable from the Project Account, as such principal and interest respectively become due. 5.03. Interest earnings from the investment of money in the Capital Subaccount and the Debt Service Subaccount shall be retained in the respective subaccounts. 5.04. The Clerk-Treasurer is directed to keep on file in his office a tabulation of the dates and amounts of the principal and interest payments to become due and amounts of the principal and interest payments to become due on bonds pay- able from the Project Account. Section 6. Miscellaneous. 6.01. The Mayor and City Manager of the City are hereby authorized and directed to enter into an Amendment To Pledge Agreement with the Authority relating to the Bonds in substantially the form attached hereto as Exhibit A, with any changes determined not to be materially adverse to the interests of the City by the Mayor and the City Attorney. Execution of such amendment to pledge agreement by the Mayor and the City Manager shall be evidence of such determination. 6.02. The Clerk-Treasurer is hereby authorized and directed to certify a copy of this Resolution and to cause the same to be filed in the office of the ~noka County ~uditor, together with such other information as such auditor may require, and to obtain from the county auditor a certificate that the Bonds have been entered upon his bond register. 6.03. The officers of the Issuer are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of all proceedings and records of the Issuer relating to the power and authority of the Issuer to issue the Bonds within their knowledge or as shown by the books and records in their custody and control, and such certified copies' and certificates shall be deemed representations of the Issuer as to the facts stated therein. Adopted thls day of , 1987. Offered by: Peterson Seconded by: Petkoff Roll call: Paulson, Petkoff, Peterson - aye The adoption of the ordinance failed. Carlson, Nawrocki - nay Regular Council Meeting August 24, 1987 page 14 The City Attorney advised the Council that this ordinance needed four fifths vote for passage. Mayor Nawrocki stated he had been previously advised that a majority vote was all that was necessary. RECESS: 8:20 p.m. RECONVENE: 8:45 p.m. e. Resolution Adopting Changes in Wage Ranges and Establishing Wages for Non- Union Custodial/Janitorial Positions and Seasonal and Temporary Positions Motion by Petkoff, second by Paulson to table this matter for additional infor- mation and that the subject be returned at the next regular Council meeting. Roll call: All ayes 7. Communications a. Request for Contribution by Mediation Services Ann Wallerstedt, Executive Director of Mediation Services, presented additional information regarding the organization and its activities. She noted that the City of Columbia Heights had two cases brought to the organization in the .month of August. All members of the Council indicated that the funding being requested should be included in the 1988 budget. b. Railroad Tracks on Jefferson Street Councilmember Paulson has received calls on the bumps on the railroad tracks crossing Jefferson Street. The Public Works Director advised the Council that any repair done to the tracks must be done by the railroad. He will contact the railroad company regarding this matter. c. Alley Party Request Motion by Petkoff, second by Paulson to approve the request for an alley party on Saturday, September 19, 1987 in thealley which runs 4Oth to 41st, between Madison and Monroe Streets subject to the requirements of the Police Department and the Public Works Department. Roll call: All ayes d. Six Cities Watershed District Letter The Six Cities Watershed District advised the Council of its budget for the coming year. The City of Columbia Heights' share would be $6,435. The budget must be adopted by two thirds of the participating cities. This item will be included in the budget deliberations. 8. Old Business a. Development Agreement Between the City and HRA Regarding Sullivan Lake Redevelopment Project This was an informational item. b. Volunteer Fire Fighters Meeting September 15th at 7:00 is the date and time selected for a meeting of the volunteer fire fighters and the City Council. The Executive Director of the Legislative Commission on Pensions and Retirements will also attend the meeting. 9. New Business a. Gambling License Application for Class B License by Catholic Charities of the Archdiocese of St. Paul and Minneapolis Regular Council Meeting August 24, 1987 page 15 The City Manager noted that the Chairman of the Catholic Charities Board of Directors had called him and requested this request be tabled until it had been discussed with the local Catholic Church pastor. Members of the Council observed that the requesting organization did not meet the requirements of the gambling resolution. Motion by Carlson, second by Peterson to deny the gambling license application as submitted by Catholic Charities of the Archdiocese of St. Paul and Minneapolis in behalf of the St. Joseph Home for Children; and, furthermore, that the City Manager be authorized to forward a letter to the State Charitable Gambling Control Board indicating the City Council's action. Roll call: All ayes b. City of Columbia Heights - Funding of City's Self-Insurance Program Motion by Petkoff, second by Peterson to table this matter for additional infor- mation. Roll call: All ayes c. Establishing Position Description for Head Custodian The City Manager stated he is viewing this position as an in-house promotion. The Mayor felt it should be advertised and offer the opportunity for others to apply. Motion by Petkoff, second by Peterson to establish the position of Head Custodian and to adopt the job description for Head Custodian dated August 19, 1987. Roll call: Paulson, Petkoff, Carlson, Peterson - aye Nawrocki - abstain d. Electrical Wiring Problems in Municipal Service Center, Project #8704 Motion by Carlson, second by Peterson to authorize the City Manager to seek proposals for electrical repair work at the Municipal Service Center. Roll call: All ayes f. Authorization to Seek Bids for MEDCO Lock System at City Hall Motion by Petkoff, second by Peterson to authorize the City Manager to seek bids for a MEDCO lock system at City Hall. Roll call: All ayes The City Manager was requested to look at other options available for security as well. g. Appointment to Traffic Commission Motion by Petkoff, second by Carlson to appoint Kevin Doty to the Traffic Com- mission. Roll call: All ayes h. Service Club Inquiry Service clubs in the City have requested information regarding the placement of a community bulletin board in the shopping mall on 40th and Central Avenues. All members of the Council were supportive of the idea. 10. Reports a. Report of the City Manager The City Manager's report was submitted in written form and the following items were discussed: 1. Joint Meeting of City Council and School Board: A joint meeting of the School Board and City Council was established for Thursday, September 24th at 7:30 p.m. 2. The Council was advised the Electrical Inspector has resigned and the Building Inspector is interviewing persons for this position. Regular Council Meeting August 24, 1987 page 16 3. Senior Outreach Worker: The County has hired the Senior Outreach Worker who services Columbia Heights residents. The City's Development Specialist advised the Council that the funding for this position included in the C.B,D,G, funds continues through December of 1988. The City Manager had understood that this funding ended in July of 1988 and noted that the Council is considering using other City personnel in this capacity. 4. Appointment of Meter Reader: Effective August 17th Mark LeDuc was appointed to the position of Part-time Meter Reader at a starting salary of $4.39. b. Report of the City Attorney The City Attorney advised the Council that the Development A~reement between the City of Columbia Heights and Crestview Lutheran Home contains a clause which addresses the provision of additional parking if it is proven necessary. The City Attorney noted that the Planning and Zoning Commission has been estab- lished as the Appellate Board to hear fire code appeals. Il. Licenses Motion by Carlson, second by Peteson to grant the licenses as listed upon receipt of the proper fee and that the fee for the Lions Club, the Boosters and the Colum- bia Heights Royalty Committe be waived and that the $30.00 fee paid by the Boosters for an Itinerant Food Concession for the Business Fair be returned. Roll call: All ayes 12. Payment of Bills Motion by Peterson, second by Carlson to approve the bills as listed with payment from proper funds. Roll call: All ayes RECESS: 11:I0 p.m. RECONVENE: il:35 p.m. The City Manager distributed the 1988 proposed budget. Reconsideration of ResOlution No. 87-50; $1,100,OOO General Obligation Taxable Tax Increment Bonds of 1987 Motion by Nawrocki, second by Paulson to reconsider the action taken by the City Council relating to Resolution No. 87-50. Roll call: All ayes Mayor Nawrocki stated he has not changed his opinion regarding this project but recognizes that the majority of the Council wishes to see this project continue. Councilmember Carlson restated his concern with the negotiations with the owners of those properties located in the area on Washington Street south of 53rd Avenue. Motion by Nawrocki, second by Paulson to offer Resolution No. 87-50. Roll call: All ayes Adjournment n~ Motion by Peterson, second by £arlso 5 p.m.. Roll call: All ayes ~.~ ~ Mayo'F-Bruce G. Nawrocki /~o-Anne Student~ Counc~i-l-Secretary